OREANDA-NEWS. On 24 February 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it placed on Rating Watch List ('RWL') the long-term credit rating of uaBBB+ (uaBBB plus) assigned to Kiev-based Karavan LLC and its two issues of registered coupon bonds, specifically series A for the amount of UAH30m due May 6, 2009, and series C for the amount of UAH130m due June 27, 2011. The outlooks on the ratings have been changed to negative from stable.

An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.

Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on condition that negative tendencies are retained and current risks are realized.

This rating action was prompted by issuers deteriorating liquidity and solvency. In fact the issuer has made coupon payments on series A bonds with a 13-day delay, which had to occur on Feb. 4, 2009. The ratings are weighed down by decreased business activity in retail sector under shrinking demand. The companys issue ratings will be revised once the annual financial statements and other information are received by the agency.

The Rating Watch List intends for informing the financial market participants about possible changes of ratings in short-term prospective. The rating placed on RWL denotes that Credit-Rating is currently considering its change as a result of events or ongoing negative trends, which may negatively affect creditworthiness of a ratings bearer.